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The government’s flagship immigration policy, known as the Rwanda plan, is hanging in the balance this morning after the highest court in the land found it to be unlawful.

But what is the scheme? Why is it so controversial? And how has it ended up in the judicial system?

The Rwanda plan was first proposed by Boris Johnson back in April 2022 as the government came under increasing pressure to tackle the growing number of small boats crossing the Channel.

The then prime minister outlined his policy that would see anyone arriving in the country illegally deported to the east African nation.

Those who successfully applied for refugee status when there would then be given the right to remain in Rwanda – not return to the UK.

But if their claim was unsuccessful, they could then be removed to their country of origin.

The deal, signed by the home secretary at the time, Priti Patel, and her Rwandan counterpart, cost the government £120m.

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Boris Johnson: ‘We must defeat people smugglers’

Mr Johnson said it would help deter people from making the dangerous crossing to the UK and tackle the “barbaric trade in human misery” caused by people traffickers.

Opposition parties and charities deemed the plan “cruel and nasty”, and claimed the policy would break international human rights laws.

There were even reports that the King – then the Prince of Wales – was a critic of the scheme.

But the government pushed ahead, with the first flight to Kigali set to take off in June 2022.

Come the day, there were only seven asylum seekers on board the plane.

Numerous court cases were launched by refugee charities, as well as the Public and Commercial Services union, ahead of take-off, calling the policy “inhumane” and demanding the deportations were stopped.

Protesters also tried to stop the flight, locking themselves together with metal pipes and blockading exits of the Colnbrook Immigration Removal Centre at Heathrow, where the migrants were believed to be held.

However, judges in the UK ruled the seven people could be deported, saying there had been an “assurance” from the government that if the policy was found to be unlawful at a later stage, steps would be taken to bring back any migrants.

This didn’t stop further last-minute legal challenges to prevent take-off though.

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Labour’s Sir Keir Starmer dubbed the government’s Rwanda plan a ‘gimmick’.

In the end, the European Court of Human Rights (ECHR) issued injunctions to halt the deportations altogether, leaving the plane grounded on a Ministry of Defence runway.

The government said it would appeal against the ruling, with Tory MPs angered that a European court could overrule the decision of English judges.

But campaigners said it showed the “inhumanity” of the plan for the human rights watchdog to intervene.

In the months that followed, there was a change in government, with Liz Truss taking the keys to Number 10 and Suella Braverman heading up the Home Office.

Both women stood by the Rwanda plan and, even when Ms Truss was ousted weeks later, her successor Rishi Sunak also gave it his backing.

The ruling of the EHRC – which ensures the European Human Rights Convention is adhered to – was still fresh in the minds of Tory backbenchers, as they saw it as holding up the policy they believed would stop the boats.

And it led to a number of calls for the UK to leave the convention, though they appeared to remain in the minority.

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Suella Braverman is a vocal advocate of the Rwanda policy

The plan itself headed back to the courts as campaigners tried a new tactic to stop it in its tracks, launching a judicial review on the Home Office’s assessment of Rwanda as a safe third country.

The government doubled down on its belief in the scheme – with Ms Braverman telling the Conservative Party conference it was her “dream” to see flights take off.

And come December of 2022, that dream looked closer to reality, as the High Court ruled in the favour of ministers, saying the scheme did not breach either the UN’s Refugee Convention or human rights laws, and that Rwanda was a “safe third country” for migrants to be sent to.

But the legal battle was far from over.

Campaigners were then allowed to appeal the ruling in the Court of Appeal, and the three sitting judges overturned the High Court’s decision.

Lord Chief Justice Lord Burnett concluded Rwanda was not a safe place for people to be housed while their asylum claims were processed, adding: “The result is that the High Court’s decision that Rwanda was a safe third country is reversed, and unless and until the deficiencies in its asylum process are corrected, removal of asylum seekers will be unlawful.”

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The Court of Appeal ruled against the government

The government was outraged, with the prime minister saying he “fundamentally disagreed” with the ruling, and would do “whatever is necessary” to get the removal flights going.

The anger of Ms Braverman and her right-wing supporters also grew, with further demands to leave the ECHR, and others calling for the human rights convention to be overhauled.

The government got approval to appeal that ruling and, as a result, it was sent to the Supreme Court.

The judgment delivered by the Supreme Court President Lord Rees found that the Court of Appeal had been right to overturn the original decision of the High Court.

He said the justices had unanimously concluded those sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not.

The full judgment said those sent to Rwanda would be at risk of re-foulement – where a refugee is returned to their country of origin where there is a substantial risk they could be subjected to torture.

The court ruling said the principle of re-foulement is not just a breach of the European Human Rights Convention, but a number of other international treaties.

Mr Sunak said ministers would now “consider next steps”.

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Millionaire former Tory donor defects to Reform

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Millionaire former Tory donor defects to Reform

Millionaire Tory donor Malcolm Offord has defected to Reform UK, saying he would be campaigning “tirelessly” to “remove this rotten SNP government”.

Nigel Farage announced the former Conservative life peer’s defection during a rally in the Scottish town of Falkirk, where regular anti-immigration protests have taken place outside the Cladhan Hotel – which is being used to house asylum seekers.

Mr Farage, Reform UK’s leader, said he was “delighted” to welcome Greenock-born Lord Offord to Reform, describing his defection as “a brave and historic act”.

He added: “He will take Reform UK Scotland to a new level.”

During a speech, Lord Offord, who previously donated nearly £150,000 to the Tories, said he would be quitting the Conservative Party and giving up his place in the House of Lords as he prepares to campaign for a seat in Holyrood in May.

The 61-year-old said he wanted to restore Scotland to a “prosperous, happy, healthy country”.

“Scotland needs Reform and Reform is coming to Scotland,” he told the rally.

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“Today I can announce that I am resigning from the Conservative Party. Today I am joining Reform UK and today I announce my intention to stand for Reform in the Holyrood election in May next year.

“And that means that from today, for the next five months, day and night, I shall be campaigning with all of you tirelessly for two objectives.

“The first objective is to remove this rotten SNP government after 18 years, and the second is to present a positive vision for Scotland inside the UK, to restore Scotland to being a prosperous, proud, healthy and happy country.”

The latest defection comes as Mr Farage finds himself at the centre of allegations of racism dating back to his time in school.

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Claims made against Nigel Farage

Sky News reported on Saturday that a former schoolfriend of Mr Farage claimed he sang antisemitic songs to Jewish schoolmates – and had a “big issue with anyone called Patel”.

Jean-Pierre Lihou, 61, was initially friends with the Reform UK leader when he arrived at Dulwich College in the 1970s, at the time when Mr Farage is accused of saying antisemitic and other racist remarks by more than a dozen pupils.

Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.

Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.

A Reform UK spokesman accused Sky News of “scraping the barrel” and being “desperate to stop us winning the next election”.

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.

On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.

Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.

“I am even more concerned that the proposal makes ESMA responsible for both the authorisation and the supervision of CASPs, not only the supervision,” she told Cointelegraph.

The proposal still requires approval from the European Parliament and the Council, which are currently under negotiation. 

If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission, a concept first proposed by European Central Bank (ECB) President Christine Lagarde in 2023.

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EU plan to centralize licensing under ESMA creates crypto and fintech slowdown concerns

The proposal to “centralize” this oversight under a single regulatory body seeks to address the differences in national supervisory practices and uneven licensing regimes, but risks slowing down overall crypto industry development, Elisenda Fabrega, general counsel at Brickken asset tokenization platform, told Cointelegraph.

“Without adequate resources, this mandate may become unmanageable, leading to delays or overly cautious assessments that could disproportionately affect smaller or innovative firms.”

“Ultimately, the effectiveness of this reform will depend less on its legal form and more on its institutional execution,” including ESMA’s operational capacity, independence and cooperation “channels” with member states, she said.

Related: Grayscale Chainlink ETF draws $41M on debut, but not ‘blockbuster’

Global stock market value by country. Source: Visual Capitalist

The broader package aims to boost wealth creation for EU citizens by making the bloc’s capital markets more competitive with those of the US.

The US stock market is worth approximately $62 trillion, or 48% of the global equity market, while the EU stock market’s cumulative value sits around $11 trillion, representing 9% of the global share, according to data from Visual Capitalist.

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